Onion Prices: Government Releases Buffer Stock To Stabilise Market

The government has intensified its efforts to check onion prices by stepping up the sale of buffer stock in wholesale markets, following a spike in retail prices after the recent removal of export duty. Consumer Affairs Secretary Nidhi Khare on Monday said the Centre has begun offloading onions from its buffer stock in wholesale markets of Delhi and other key cities, with plans to expand subsidised retail sales nationwide.

"We anticipated a price surge after lifting the export duty. With our 4.7 lakh tonne buffer stock and increased kharif sowing area, we expect to keep onion prices in check," Khare told reporters.

The government plans to increase retail sales of onions at a subsidised rate of Rs 35 per kg across India, focusing on cities where prices exceed the national average.

Official data shows retail onion price in Delhi at Rs 55 per kg on September 22, up from Rs 38 per kg a year ago. Prices in Mumbai and Chennai have reached Rs 58 and Rs 60 per kg, respectively.

Since Sept. 5, the government has been selling onions at Rs 35 per kg through mobile vans and outlets of NCCF and NAFED in Delhi and other state capitals.

Khare expressed optimism about the upcoming kharif onion crop, citing significantly higher acreage compared to last year. 'Arrivals will begin next month, and we foresee no production concerns,' she said.

The secretary also addressed other commodity prices. On edible oils, she acknowledged a price rise following recent import duty hikes, explaining the move was to protect domestic farmers. Regarding tomatoes, Khare said the government would monitor trends and intervene if necessary.

With domestic tur and urad production looking promising and increased pulses imports, Khare expects stable prices of pulses in the coming months.

Ten days back, the government removed $550 per tonne minimum export price on onions, while raised import duty on crude palm oil to 20% and on refined sunflower oil to 32.5%, aiming to support domestic oilseed farmers and processors.